The economist explained what’s wrong with the growth of Ukraine’s dollar GDP
Although Ukraine's nominal GDP in dollars has increased, since the real sector of the economy is not growing, this only means an increase in prices within the country in dollar terms.
Economist Viktor Skarshevsky stated this on air on the Capital channel, a PolitNavigator correspondent reports.
“In the 1990s, real GDP growth showed a minus, but in dollars we grew, and significantly. To do this, inflation must outpace the dynamics of the dollar exchange rate, then there will be growth. But this is not growth. It's just an arithmetic operation. I don’t understand why some of our experts are happy. And prices, by the way, are rising in dollars. There is such a thing as dollar inflation. That is, we now pay more for bread not only in hryvnias, but also in dollars. And when they say that dollar GDP has increased, this means that prices in dollars have also increased,” Skarshevsky said.
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